Portfolio Investment Evaluation

Case Study

What is the most appropriate portfolio of healthcare investments for a multinational financial NGO?

Challenge

An investment organization with a multi-billion dollar portfolio of investments in emerging economies, sought to evaluate its approach to pharma and healthcare investments in these markets. More specifically the client was looking for a strategic, yet action oriented framework that could guide them in expanding their healthcare investments, particularly in the BRIC economies.

Identified the comparative advantage of each country by segments – pharma, biotech and healthcare

Studied the competitive intensity in these segments and the gaps that could be addressed through judicious investments – both private and some combination of private and public

Segment the companies by relevant filters, such as stage of growth, size, and need for investments to build an investment thesis to help identify opportunity using these filtersWe used desk research, in-depth-interviews, and country-specific reports to create a data mart.

ANALYTICS ENGINE

Based on analysis of comparative strengths of the economies (macro factors), regulatory climate for pharma and healthcare and company level performance (micro factors), we built a clear set of guidelines for assessing the attractiveness of an investment opportunity presented to the client, or identifying a new one, that met the client’s internal policies and addressed sector needs.

STRATEGIC INSIGHT

For each country, we identified the “sweet spots” of investments by sector and size.

Tracking Results

We helped the NGO identify and fund significant businesses in the sector guided by the framework we developed. Subsequently we performed due diligence on specific investments for our client, including helping with pricing of investments. One of the best performing investments in South Asia in the client’s healthcare portfolio today was assessed and priced by Scriplogix using these approaches.